AUD/JPY remains resilient near 71.90 despite dismal Aussie trade data
|- AUD/JPY remains mildly bid near 71.90 despite the dismal Aussie trade data.
- Australian trade surprlus narrowed more than expected in August.
- The uptick in the S&P 500 futures is likely saving the day for the AUD/JPY bulls.
AUD/JPY is barely moving in response to the weaker-than-expected Australian trade data released soon before press time.
The currency pair continues to trade around 71.90 – the level seen before Australian data – having hit a low of 71.75 in the early Asian trading hours.
Australia's August trade surplus came in at A$5,926 million, missing the expected figure of A$ 6,000 and down from the previous month's print of A$7,268 million.
Exports or outbound shipments dropped 3% in August, having risen by 1% in July and imports growth stalled in August, having risen by 3% in the preceding month.
The decline in exports isn't surprising, given the US-China trade war and rising protectionism in the global economy. Meanwhile, the slide in imports underscores weak domestic demand and validates the Reserve Bank of Australia's rate cuts.
As a result, the AUD/JPY pair may come under pressure during the day ahead – more so, if the futures on the S&P 500 report losses. As of writing, the S&P 500 futures are reporting a 0.15% gain.
Technical levels
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